22 October 2013 16:02 [Source: ICIS news]
PRAGUE (ICIS)--The increasing use of glycerine to produce epichlorohydrin (ECH) is not expected to impact on glycerine market fundamentals, a senior manager at Solvay subsidiary Vinythai said on Tuesday.
Glycerine-based ECH currently accounts for 11% of global ECH production, but limited consumption and increasing glycerine supply are likely to limit the impact of that figure on the glycerine market, according to Boonchana Mangkonkarn, senior department manager of supply chain at Vinythai.
“Glycerine ECH projects have not and will not change supply or demand for glycerine as consumption is limited and will be met by increasing [glycerine] supply,” Mr Mangkonkarn said, speaking at the 9th ICIS World Oleochemicals Conference on Tuesday.
The production of ECH from glycerine is a relatively new process, and there had been concern in the market that this would put pressure on glycerine supply.However, there are no new competitive glycerine applications coming on-stream during 2013-2015, while glycerine supply will increase in southeast Asia due to increasing biodiesel mandates, Mangkonkarn added.
China is the world’s largest ECH market, with an annual growth of 6%. The epoxy resin market represents more than 90% of ECH demand in Asia.
The ECH market has been declining since mid-2012 following the decline of downstream industries affected by the global economic crisis, according to Mr Mangkonkarn, although he added that there have been some signs of recovery since September 2013.
($1 = €0.73)
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